Correct Levels of Insurance

Most superannuation funds contain a default level of life insurance, however often the cover provided is nowhere near enough and usually only covers death and TPD.

It’s important to consider what you and your family would require if something were to go wrong and to make sure you have the right cover in place.

The insurances generally available inside super provide cover for:

• Death
• Total and Permanent Disability (TPD)
• Loss of salary due to sickness or accident (salary continuance)

Cover inside super is often less expensive than cover outside, but the quality of the cover provided can vary wildly. Trauma (otherwise known as critical illness) insurance is not available inside super.

You can also arrange insurance cover for your spouse or partner within your super fund by arranging a spouse account.

This is an area where it is really important to seek advice, to ensure you have appropriate cover at a good price, as there is no ‘one size fits all’ solution.